Getting professional help at some point in your financial life is a good idea. It is important to resolve the “duel” between asset management vs. wealth management to choose the best professional!

Next, we will explain how each of these professionals works to help you in this choice:

Indeed, as the title suggests, an asset manager is a professional who takes care of your investments for you.

Thus, this professional’s responsibility is to analyze stocks, bonds, mutual funds, ETFs, and other forms of investments.

The main interest is finding options that best suit your profile and align with your personal and family goals. In addition, asset management aims to assess risks and maximize profits.

For this, these professionals create a specific portfolio designed for you. However, you might be thinking, “why can’t I do this myself without having a professional?”

Well, as your investments grow, it becomes more difficult to manage them. After all, with a higher amount to invest, you have access to exclusive options for funds and other investments.

You may also have to pay new fees and taxes. All this, not to mention the new opportunities in the market all the time. To understand this market, you need study, analysis, and expertise.

If you don’t know how to manage all these facts, you may be “leaving money on the table.” That is, earning less than you could. Or, even worse, you may earn less each month without realizing it.

Conducting an in-depth study of these variables is time-consuming. In fact, the time it would take you to develop these skills would be better spent with your family in your career.

Thus, hiring someone with experience who knows how to get the most out of your investments is much more comfortable.

The “salary” of this type of professional is usually commissions charged based on the amount administered and percentages of profits.

Before selecting a good asset manager and ending the “asset management vs. wealth management” dispute, it is important to understand what a wealth manager does.

Well, this professional has a much broader field of action than an asset manager. In fact, the wealth manager takes care of the entire financial life of a client. That includes:

As you can see, this is a professional who takes care of his money in a much broader way. Thus, the main objectives are to protect your assets so that it grows safely in the long term.

The reasons for using this service are very similar to those mentioned above. When their wealth grows to a certain level, many homeowners don’t know how to keep it growing.

In fact, in situations like this, making the wrong choice can cause your assets to decrease. So it’s much more advantageous and smart to have someone who knows how to manage and multiply it.

As you can imagine, these professionals are often better paid than asset managers. After all, the responsibility required for this position is much greater.

A wealth manager’s fee is generally defined as a fee on the total value of assets under management.

Indeed, to define which professional to hire, you need to understand the type of help you need in the short and long term.

Think about it, keeping in mind that a wealth manager usually charges much higher fees. So if you just need help investing better, look to asset management.

If you also need help in specific sectors, such as estate planning, you can hire a specific professional for this.

However, it is better to have good wealth management if you are looking for an integrated financial plan.

For example, imagine that you need an investment portfolio to finance your children’s education and retirement. In such cases, only someone with a broader view of your finances can help you.

To give other examples, we list some situations where you may need asset management or wealth management:

We have selected below precious tips for those looking for a good asset or wealth manager. Check below:

Look for someone who already uses this type of service among the people you trust. Ask how the hired professional works and how much they charge for their services.

That way, you’ll have references from people you really trust. Another option is to look for specialized websites for this service. In fact, the most relevant for this type of service is the Financial Planning Association.

Some certifications may indicate an ethical standard and the ability to manage assets and investments. The main ones are the Certified Financial Planner (CFP) and the Certified Public Accountant (CPA).

These certifications alone cannot tell you if this is the right professional for you, but they are a strong indicator.

Ask as many questions as you can of the professional you pre-selected. Only in this way will you be confident in entrusting goods built with so much effort to this one.

You now have more resources to understand the differences between asset management vs. wealth management.

However, even with the help of these professionals, we recommend that you know at least the basics of investing. Thus, you will be able to dialogue more easily with these professionals.

To understand the basics of the stock market, read our post below!